CTI Explains Toll Manufacturing vs Contract Manufacturing

Often, manufacturers require a partner to finish or enhance products they are preparing to sell. Sometimes, manufacturers lack the equipment and expertise necessary to make these enhancements. In these cases, the manufacturer must choose between investing time and money in production equipment or working with a partner. When choosing the latter, manufacturers often opt for a tolling service. There are several variations of tolling arrangements. Conversion Technologies International (CTI) is the industry leader in tolling services. They understand the differences of toll manufacturing vs contract manufacturing and help clients pick the best option.

Toll Manufacturing vs Contract Manufacturing

Toll manufacturing is an advantageous option for many companies. But what is toll manufacturing vs contract manufacturing and which one is better? There are benefits to each and the best option will depend on needs of the client. Toll manufacturing is an arrangement in which one company supplies raw materials to a company like CTI for processing. Then, CTI performs its service and returns products to the client.  

Toll manufacturing is different from basic contract manufacturing in several ways. To start, contract manufacturing outsources products to a third-party. It differs from toll manufacturing in that the contract manufacturer typically sources the raw materials. In other words, a contract manufacturer produces a custom product the client can then sell. Additionally, contract manufacturers often package the product for sale and then ship directly from their facilities. CTI can offer companies the option to ship directly to the distribution center or retailer.

Benefits of This Type of Arrangement

There are many benefits to this arrangement. The client does not have to invest time and money into new equipment or processes. And clients can take advantage of CTI’s unmatched expertise in this field. Most of all, though, clients can rely on CTI for toll manufacturing or contract manufacturing services.

Clients can rest assured knowing either approach is possible. After the initial consultation and requirements are agreed upon, it is a hands-off approach. CTI can take delivery of the semi- or unfinished goods. Then, they can perform their service on those products and return to the client. Or, in many cases, they can forward on to the retailer or distribution center.

What Types of Materials Do They Handle?

Their clients are in almost every industry, including automotive, furniture, roofing and construction materials, consumer products and more. Companies find their services beneficial and cost-effective. Rather than invest in expensive equipment and technicians, they hand over part of the process to CTI.

Since they serve a wide variety of industries, they are also proficient in working with a broad range of materials. By providing adhesive coatings, laminating and slitting and die cutting services, they are capable of working on most materials. Those pages explain their expertise in each process.

Why CTI is the Industry Leader

They are the industry leader because of their unique, five-step process:

1. Initial Consultation—start with a free consultation during which CTI’s experts will understand your needs. They will match them with the right service and begin the setup. Every part of the production can then run smoothly.
2. Research & Development—CTI maintains a cutting-edge, state-of-the-art production facility. Take advantage by testing out new materials or techniques for products of all types.
3. Lab Testing/Samples—during any stage, they can produce a sample. Clients can see up close how the product will turn out. Best of all, costs are minimal—in fact, they are often offered at no charge.
4. Pilot Trial Run—a pilot run helps ensure a successful finished product. Work out any kinks and discover any imperfections during this stage. That way, the likelihood of success is much higher.
5. Production—once everything has been verified, full production can begin. CTI will oversee the entire process so that clients don’t have to. In addition, turnaround times can be as fast as clients need them to be.

This process is why companies from startups to Fortune 500 corporations partner with CTI. Unlike other firms, they are a true, consultative partner. Their expertise allows for a smooth, hands-off approach for clients. Check out the many success stories resulting from this partnership.

Ready to get started? Just fill out their easy-to-use quote form and they will be in touch shortly.  

Today, begin saving money by calling 419-924-5566 to speak with an expert today.